KATHMANDU: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal highlighted the need to form a high-level mechanism with private sector’s participation to address the existing economic problems.

He made such remarks during a meeting with newly-appointed Finance Minister Bishnu Poudel at his office in Singha Durbar on Wednesday.

"The morale of all sectors, from the general public to industrialists and businessmen, is low while the whole economy is in a weak situation at present. Serious initiation is required for a way out of this situation," he said.

The FNCCI president demanded that industrialists, businessmen, and the private sector be given a place in the protocol (order of precedence) determined by the government.

According to him, industrialists and businesspersons are not in a position to make fresh investments enthusiastically.

"Investments are not being made despite adequate liquidity and low interest rates. Industrialists and entrepreneurs have not been able to pay the principal and interest on their loans. New entrepreneurs have not been able to venture into the market," Dhakal said. He suggested instituting a high-level mechanism with private sector’s involvement to take initiatives for resolving these problems without incurring any financial burden on the State.

Dhakal reiterated that the government should make significant policy decisions to motivate the private sector.

The FNCCI president also complained that illegal imports have increased, resulting in lost government revenue and problems for traders and entrepreneurs.

In the meeting, the FNCCI placed several demands before the finance minister, urging government bodies to expedite works related to land acquisition for development projects, construction of approach roads, and carrying out Environmental Impact Assessments.

Additionally, the FNCCI suggested the government clarify the jurisdiction of regulatory bodies, expedite payment of dues to construction entrepreneurs, and promptly resolve the dedicated feeder and trunk line power tariff dispute. The FNCCI also called on the government to seriously address the problems seen in the cooperative and microfinance sectors.

The private sector requested a convenient and flexible system for the upcoming fiscal year's monetary policy that does not upset the existing system. Among other topics, the FNCCI raised the need to ease the implementation of guidelines on current capital loans and adopt a flexible policy for managing the capital budget.

In response, the Finance Minister asserted that meaningful initiatives are being taken to address the problems faced by the microfinance and cooperatives sector.